FINANCIAL RESOURCES AND MECHANISMS AND THE CROSS-SECTORAL CLUSTER

The Philippines, on behalf of the G-77 and China, said the debate on financial
resources should focus on increasing ODA, improving market access, more favorable
terms of trade, a solution to the debt problem, and foreign direct investment.
Chile presented the results of the working group under the Montreal Process
aimed at establishing criteria and indicators for the conservation and sustainable
management of temperate and boreal forests. China said that the rational
development of forest resources should reflect each country's economic and social needs.

Canada said the proposed panel on forests should operate in an open and
inclusive manner and coordinate initiatives on priority issues. Malaysia called on
developed countries to increase ODA levels. The CSD should also take steps to promote
innovative financial mechanisms and assess the effectiveness of the policy instruments in
the matrix. The terms of reference for the forestry panel should include: assessment of
actions taken; enhancement of all types of forests; identification of cross-sectoral factors;
and promotion of open and free trade in forest products. Brazil said the panel on
forests could consider: broadening scientific knowledge; understanding factors affecting
trade in forest products; and the feasibility of developing an agreed set of criteria and
indicators.

India said that integrated watershed management with strong community
involvement is the key to realizing sustainable agriculture. Bangladesh
recommended more coordination between the Bretton Woods institutions and the CSD.
Australia called on the CSD to do more work on economic instruments, but
questioned the viability of taking up the debt issue in light of the work done by the Social
Summit. She encouraged the forest panel to focus on indicators, labeling, institutional roles
and analysis of the underlying causes of deforestation.

Iceland called for reductions in the use of agro-chemicals and support for integrated
pest management. He also called for a more significant role for farmers. Mexico
said the forest panel should develop criteria and indicators, encourage participation of
relevant UN bodies and submit a preliminary report in 1996. The US said that
the forest panel should be guided by the FAO Ministers' statement. He expressed
skepticism about a single solution to the debt problem and air transport taxes. He supported
a pilot project on tradeable CO2 permits.

Switzerland supported the creation of a forestry panel and welcomed the NGO
initiatives on the mountain agenda. France, on behalf of the EU,welcomed debates involving the World Bank and the IMF and noted the EU's
commitment to developing sustainable forestry principles. Uganda noted the
omission of early warning systems on drought and indicators to predict desertification from
the Secretary-General's report, and called for consideration of forestry within the
framework of the Biodiversity Convention.

The Republic of Korea said technology transfers and new resources are the
prerequisites for comprehensive CSD action. Indonesia supported time-bound
targets for the introduction of integrated land management programmes by 2000 and a
more holistic approach to currently fragmented management approaches.
Hungary said an international exchange of information between foresters and
policy-makers is needed. Iran said there is an urgent need for financial and
technical assistance to help developing countries with low forest cover and to combat
desertification and drought. Japan noted that the loss of forests is associated with
global socio-economic and cultural consequences and supported the proposed forestry
panel and the development of indicators.

Algeria said mobilization of new and additional financial resources and
resolution of the debt problem is essential. The issue of economic instruments should be
left to governments.

ESCAP has undertaken a number of activities to implement Agenda 21,
including addressing urbanization and integrated land management, and combating
desertification. Brazil expressed concern about decreasing ODA levels. The role
of private capital flows in promoting sustainable development is essential, but it should not
replace ODA. The Philippines recommended studying the feasibility of adopting
economic instruments and encouraged developed countries to encourage private sector
investment in developing countries. Greenpeace endorsed the need for a
comprehensive debt strategy and more widespread foreign direct investment.